Well I was told by my co-worker from her own experience that she owed credit card companies when whe was 18 and never payed for them.. Well as she told me Collection companies kept calling her harrassing her but she still never payed for them.. Now 6 yrs has passed she told me that the debt was clear on her credit record.
Is this true? Can A debt dissapear from your credit history in time? All I know is the only way it will dissapear is if you file bankruptcy.
Please confirm this..
2006-08-02 06:38:01 · 13 answers · asked by emac4lyf 4 in Business & Finance ➔ Credit
Amazing.
This is a great example of why Yahoo needs to do something with this system! Why can't we vote and penalize people for poor answers???
Why can't you responders take a few minutes to actually research your answers before responding???? I seem to spend most of my time correcting you morons!
Jim R is the only correct responder.
Lets all open our textbooks to the Fair Credit Reporting Act....Section 605.
Debts can only be reported on your credit reports for 7 years, beginning from the date of the delinquency. PERIOD!
It's not the charge off date....not the last activity date...not the pay off date.
So your friend told you correctly. Just wait the 7 years and then check your credit report to be sure it has been removed, and the collection agency didn't do something illegal, like "re-age" the debt by changing the delinquency date. (This is very common).
If they don't remove it, you can sue them for $1000 in small claims court. Just read the FCRA for info.
See the link below for more good info.
2006-08-02 08:04:16 · answer #1 · answered by Anonymous · 1⤊ 1⤋
debts are removed when they are paid.
Bankruptcy makes them stay on your report for 7 years for viewers, and 10 years behind the scenes, however certain people can access them forever (like insurance companies, employers, etc.). If you earn money again within a certain period of time then you need to repay those credit cards debts even though they were listed in bankruptcy. While they are still in view on your credit report for 7 years the notation "Bankruptcy" is listed besides them. If you owe money then collectors can always come after you, even for small amounts and can put liens on your assets. Sometimes it will show on the report beside the debt notation that the debt has been "charged off" (by the company because it was too small to collect). If you owe money to companies they very will might not deal with you ever again, so it's good to pay your bills. Rule of thumb is "never burn your bridges".
If you bought something then you owe it and need to pay for it. There's no easy way out.
2006-08-02 14:21:21 · answer #2 · answered by sophieb 7 · 0⤊ 0⤋
Nothing goes away from your credit report. It will remain there as an unpaid debt, "past due greater than 120 days" forever. The only way it will change is if she pays it, she gets a charge off (which isn't much better) or can convince a judge she does not owe the debt.
What she may be referring to is that many states make a debt uncollectable if it hasn't been taken to court for enforcement within 2 years of the final action on the account. Filling for bankruptcy results in a chargeoff which stays on your record forever, as does the bankruptcy itself.
Nothing magically "disappears", but over time the negative rating weighs less against the credit score. An unpaid debt however always weighs against her credit score, unless as I noted the companies charged it off.
2006-08-02 14:04:09 · answer #3 · answered by Anonymous · 0⤊ 0⤋
A lot of bad information in the other answers. Please read the links I have provided so you can sort through facts vs the heresay and misconceptions.
Here are the basics.
You are looking at 3 different things when you talk about debt.
1) Your credit report.
This holds 7 years worth of basic information, both good and bad. Certain things such as Bankruptcy will show for up to 10 years. For most information, after 7 years it drops off. This is governened by the Fair Debt Collection Act linked below.
http://www.ftc.gov/bcp/conline/pubs/credit/fdc.htm
2) The statute of limitations for debt collection.
The statute of limitations is the amount of time a collector has to bring suit against you in a court of law and get a judgement. This varies by type of debt and by state law. You can find the basics on most states at the below link.
http://www.fair-debt-collection.com/SOL-by-State.html
3) Your obligation to pay the debt. Your obligation to pay the debt continues until you die (at which time it passes to your estate) or you pay it. Even after the 7 years have passed, it falls off your credit report, and they are no longer legally able to collect a judgement a creditor can continue call you as long as they do not violate the collection standards listed in the Fair Debt Collection Act.
A good site for credit information is linked below.
http://www.creditboards.com/forums/
2006-08-02 13:59:27 · answer #4 · answered by Jim R 5 · 0⤊ 0⤋
Hooray! For Studly's, Jim's and Jan's good answers!
It's absolutely true that negative marks CAN and WILL disappear after 7 years. I had a cell phone bill from some years back, my credit report said the debt will stop being reported in Feb of '06. When I got my report last month, it was gone!
Definitely read up on the Fair Credit Reporting Act.
2006-08-02 22:06:26 · answer #5 · answered by Celeste 6 · 0⤊ 0⤋
I don't know about 6 years but usually negative information is removed from your credit report in 7 years. For people who file bankruptcy, that will stay on your report for 10 years.
I'm proof that negative information is erased in 7 years. I ordered my free credit report from all 3 CRAs in July. One of the delinquent accounts was already erased from all 3 CRAs! I disputed a Captial One account that should have been removed in May. The dispute was found in my favor and deleted from my credit report. TransUnion prints the date they plan to remove a delinquent account from your report. My last adverse account is scheduled to be removed in October/2006, just a few more weeks from now.
2006-08-02 16:30:30 · answer #6 · answered by Jan4 4 · 0⤊ 0⤋
NO. things NEVER disappear from your report after 6-7 years. what happened in her case was that the collectors eventually gave up and never followed through with the claim. it will still be there and she'll know it whenever she tried to get a mortgage or car in the future. right now it is currently dormant and may or may not come back to haunt her.
even if she were to have paid it off it would still be on her report until the day she dies. what usually happens though, assuming she had paid it, would be that it would no longer affect her credit negatively. right now it is still affecting her credit and be sure to tell her she's not free from this debt yet. bit ignorant in thinking that it's wiped completely off your report after time. it's still there and will always be there. one day though it should come back to haunt her.
2006-08-02 13:42:07 · answer #7 · answered by Anonymous · 0⤊ 0⤋
depending the nature of debt, it could take 7 to 10 years for them to take it off
by that time, the non payment has eaten up your credit score anyway
bankruptcies ussually go away in 7 years
2006-08-02 13:44:06 · answer #8 · answered by Rigger 3 · 0⤊ 0⤋
most negative records will stay on your credit report for 7 to 10 years, depending on the outcome...
2006-08-02 13:41:24 · answer #9 · answered by Anonymous · 0⤊ 0⤋
nope. i know because i filed for bankruptcy 11 years ago.
you got to try and restart your credit and keep it in the good zone then companies may give you a second chance.
2006-08-02 13:41:25 · answer #10 · answered by Anonymous · 0⤊ 0⤋